The effects of biaxial compressive and tensile strain on the excitonic resonances and associated changes in refractive index and electro‐optic effect in quantum wells have been calculated and measured. Theoretical calculations include the important heavy‐hole–light–hole band mixing effects. It is seen that the excitonic contributions dominate near the band edge. With increasing compressive strain the linear electro‐optic effect is slightly increased, while the quadratic effect is greatly enhanced. The effects are reversed in quantum wells under tensile strain.